I've been wondering about this problem too. Not in the context of this pay package but generally.
The idea that an executive is there to drive up the stock price, Musk has done that in spades, arguably driving the price up to absurd valuations.
>That is, the problem is that Tesla’s current stock price is too high, because Musk has already accomplished what Tesla wanted him to accomplish in 2018. A related problem is that you want to award Musk a bunch of options that are contingent, but you also want to reward him for hitting the targets he already achieved. Again, the essential problem is that he has accomplished too much already.
And if a company is over valued (price has come down but you still could argue it) what does Musk or the next guy do? Drive it back up to absurd levels / possibly doomed to crash levels?
That's not good for the business is it? Or is it less a business and just stock game?
It's interesting navigating the relationship between sort of investors who drive up the value of Tesla because they think Musk can do amazing things, and also, no one thinking a pay package like this might be fair because Musk can't do said amazing things.
Like Tesla seems valued partially from the anticipation that potentially he _could_ rocket it to a 10 trillion dollar valuation.
The idea that an executive is there to drive up the stock price, Musk has done that in spades, arguably driving the price up to absurd valuations.
>That is, the problem is that Tesla’s current stock price is too high, because Musk has already accomplished what Tesla wanted him to accomplish in 2018. A related problem is that you want to award Musk a bunch of options that are contingent, but you also want to reward him for hitting the targets he already achieved. Again, the essential problem is that he has accomplished too much already.
And if a company is over valued (price has come down but you still could argue it) what does Musk or the next guy do? Drive it back up to absurd levels / possibly doomed to crash levels?
That's not good for the business is it? Or is it less a business and just stock game?